The Short-Term Effect of the Paycheck Protection Program on Unemployment

Santiago Barraza, Martín Rossi and Timothy J. Yeager ()
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Timothy J. Yeager: Walton College of Business, University of Arkansas

No 144, Working Papers from Universidad de San Andres, Departamento de Economia

Abstract: We study the short-term causal effect of the Paycheck Protection Program on unemployment. Using the 2019 density of Small Business Administration member bank offices in a county as an instrument for PPP loans originated in that county during April 2020, we find statistically and economically significant effects from the program on unemployment. Our results highlight the importance of this relief policy and the financial system infrastructure in preserving jobs during the COVID-19 crisis.

Keywords: Banks; Financial system; COVID-19; Labor Market. (search for similar items in EconPapers)
JEL-codes: G18 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2020-08, Revised 2020-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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https://webacademicos.udesa.edu.ar/pub/econ/doc144.pdf First version, August 2020 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:sad:wpaper:144

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